Centro at the heart of things

It’s never a dull day at Centro’s Melbourne headquarters. The shopping centre giant was quick to bat away more speculation this week that a deal to sell its Australian business to
Lend Lease
is in the offing.

Some in the market are pointing the finger at sources deep within the bidder’s camp. However, Lend Lease chief
Steve McCann
flatly rejected the rumourtrage in an investor briefing this month.

The real game may be elsewhere. Hedge funds have been circling the discounted equity in Aussie property trusts.
Centro
is not immune from this. As much as 15 per cent of Centro Retail Trust’s register may be held by the vultures.

They will face off with the hedgies who control the parent stock when Centro’s local assets are rolled into a new fund.

Yes, the excitement is building at Centro. It is anticipated head honcho
Robert Tsenin
will reveal an initial implementation agreement on the new fund within a month.